- Project Title:
- Oversight of Highway Contract Routes - Insurance
- Start Date:
- Monday, May 21, 2018
- Estimated Report Release Date:
- November 2018
Highway transportation is the surface transportation of mail by means other than bus, rail or water. Service may be between two or more designated points (over the road) or in a local metropolitan area (shuttle service). Highway transportation contracts may include requirements for in-route distribution of mail in specially designed and equipped vehicles, box delivery, collections and other services similar to those provided by rural carriers.
The Surface Transportation Category Management Center and Surface Transportation Operations establish policy for Highway Contract Route (HCR) contract administration and transportation operations. When suppliers are engaged preliminarily in work for the Postal Service they may be required to carry insurance to protect their interest.
Our audit will determine whether Postal Service Contracting Officers (CO) are properly managing HCR contracts (specifically liability insurance requirements) in accordance with policies and procedures.
- What controls should the Postal Service have in place to ensure that policy coverage is continuous throughout the contract lifecycle and that there is no lapse in coverage?
- What penalties, besides termination, should the Postal Service impose on suppliers who do not maintain insurance coverage?